London Daily

Focus on the big picture.

0:00
0:00

FTX assets worth $3.5bn held by Bahamas securities regulator

Authority says it is holding digital assets until they can be returned to creditors and former customers
The Bahamas securities regulator has said it has seized assets worth $3.5bn (£2.9bn) from the failed cryptocurrency exchange FTX and plans to return them to creditors and former customers.

The Securities Commission of the Bahamas said it had transferred all digital assets under the custody or control of FTX Digital Markets, a Bahamas subsidiary of the FTX operation, to its own digital wallets for “safekeeping”.

The transfer took place on 12 November, the day after the wider FTX business, comprised of dozens of affiliates and the trading arm Alameda Research, filed for bankruptcy protection in the US.

The commission said in a statement: “The digital assets transferred on 12 November 2022 to digital wallets under the exclusive control [of] the commission are being held by the commission on a temporary basis, until such time as the Bahamas supreme court directs the commission to deliver them to the customers and creditors who own them.” It added that the assets could also be released to customers and creditors via the company’s liquidators.

The commission said the assets were valued at more than $3.5bn, “based on market pricing at the time of transfer”, without giving further details about the types of digital assets it had seized.

FTX, once one of the world’s largest cryptocurrency exchanges, collapsed in November as customers rushed to withdraw billions of dollars from the business amid fears about the true state of its balance sheet.

The company’s founder and former chief executive, Sam Bankman-Fried, who was based in the Bahamas, was subsequently charged in the US with fraud, conspiracy to commit money laundering and conspiracy to defraud the US and violate campaign finance laws. He was extradited to the US last week and has been freed on $250m bail.

Bankman-Fried, 30, is expected to enter a plea to those charges at a federal court in New York on 3 January.

Caroline Ellison, the former chief executive of FTX’s sister company, the hedge fund Alameda, agreed to plead guilty to seven offences including wire fraud, securities fraud and money laundering.
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Iran Sentences Nobel Laureate Narges Mohammadi to 1-Year Prison Term for Propaganda
Woman Suing UK Intel Services Denies China Spy Allegations
News roundup
Good day, everyone! We've got some gripping stories for you today, spanning from the Middle East to Europe, and even a touch of Hollywood.
Britain’s Refugee Visa Rules Stranding Children in War Zones
UK Elections Predict ‘Electoral Extinction’ for PM Sunak’s Conservative Party
Italian Activist Ilaria Salis Returns Home After Election to European Parliament
Good morning!
England Faces Serbia in Euro Opener with Defensive Concerns
Dermatologist Warns Against Sunbed Usage
Fake Pro-Reform UK Social Accounts and Their Influence on Elections
UK Man Jailed for Non-Consensual Condom Removal
Reform UK Surpasses Conservatives in Historic Poll
US, Britain, Canada Accuse Russia of Interference in Moldova’s Election
Taylor Swift Fans Create Seismic Activity in Edinburgh
Sunak Aide Under Investigation for Election Bet
Labour Leader Starmer Focuses on Wealth Creation for Upcoming UK Elections
G7 to Use Frozen Russian Assets for $50 Billion Ukraine Aid
Anti-Israel Irish MEP Clare Daly LOST her seat in the EU Election
Johnson & Johnson Settles Talc Safety Claims for $700 Million
EU Urged to Welcome Skilled Russians to Weaken Putin
EU Elections Overview: Far-Right Gains and Major Political Shifts
Israel Rescues Four Hostages from Gaza
Emmanuel Macron Calls for Snap Election
Jordan Bardella: Young Far-Right Leader Poised for Future Political Influence in France
World's Oldest Privately Owned Book Auctioned for $3.8 Million
Animal Rights Activists Deface King Charles' Portrait in Protest
Dutch Military Intel Uncovers Extensive Chinese Cyber Espionage
Turkish Student Arrested for Using AI to Cheat in University Exam
Rise in Dengue and Other Mosquito-Borne Diseases in Europe Due to Climate Change
EU Elections Overview: Far-Right Gains and Major Political Shifts
Far-Right National Rally Dominates France's EU Vote
Macron Calls Snap Legislative Elections After Far-Right Victory
Far-Right Gains Significantly in EU Election
UK Job Market Shows Signs of Recovery
Orban’s Fidesz Party Wins Majority in Hungary’s EU Elections as New Challenger Emerges
Meloni's Far-Right Party Wins European Elections in Italy
Key Insights from the European Union Elections
European Union Elections and Rise of Far-Right Parties
England Loses Over 260,000 Social Rent Homes in a Decade
Campaigners Urge Government to Block Shein's FTSE Listing
First NHS AI-Run Physiotherapy Clinic Launches This Year
British TV Presenter Michael Mosley Found Dead on Greek Island
Ukrainian Forces Claims First Strike on Russia's Su-57 Fighter Jet
Macron Dissolves Parliament and Calls Snap Elections
Russia Adds Yulia Tymoshenko to Wanted List
UK Foreign Secretary David Cameron Tricked by Hoax Caller Posing as Former Ukrainian President
Kate Middleton's Absence from Colonel's Review Due to Chemotherapy
UK Foreign Secretary Deceived by Prank Video Call
Sunak Criticised Over D-Day Exit in BBC Debate
×